Bitcoin price drops below critical support at $ 33,000 as Bitfinex whales are too short

Bitcoin (BTC) fell below the USD 33,000 support on July 8th as it risks invalidating a reliable trading range.

Trader: $ 31,000 next retest for BTC

Data from Cointelegraph Markets Pro and TradingView show BTC / USD fell to $ 32,000 in trading on Thursday.

The move follows an overnight retracement of around $ 35,000, with Bitcoin failing to break a key resistance level.

With this, Bitcoin risks invalidating a bullish scenario where it enters the next phase of the Wyckoff distribution with a possible exit to the upside – around $ 39,000.

“Lost range of $ 33k and I’m looking for $ 31-31.4k”, famous trader Michaël van de Poppe warning just before you start soaking.

At the time of writing, volatility is still signifying a rebound in the range, with BTC / USD hovering around $ 32,500 after a local low of $ 32,490 on Bitstamp.

Bitfinex shorts increase 160% per hour

The latest price action comes hours after renewed selling pressure, thanks in part to an unknown whale trying to sell it for over 5,000 BTC.

How Note Journalist Colin Wu took short positions on the major Bitfinex exchange on July 8th.

Related: Data doesn’t rule out Bitfinex shorts driving Bitcoin price down

A mysterious Bitfinex user has started short positions of at least 5,219 BTC worth $ 173 million at $ 33,000.

“According to data, as of 1:00 p.m. Beijing time, an account (or an institution) borrowed Bitcoin to do short sales on Bitfinex,” Wu reported.

“As of 3:03 pm, he has borrowed a total of 5219 BTC and this number is still growing. Most short positions are not hedged. “

At the time of writing, the total number of Bitfinex short positions has increased 160% in about two hours.

However, Bybt’s numbers still show that Bitfinex’s short-term deals roughly match long-term purchases, with long-term purchases accounting for over 70% of the total.

Whale slimming is not new. As Cointelegraph reported, there were also fluctuations in trader behavior in June, with Wu keeping an eye out Worth 15,000 BTC Bets were flooded when new prices fell on June 25th. The next day, BTC / USD saw the new USD 30,000 support retested.